KPMG survey: Saudi CEOs positive about future growth

Abdullah Al-Fozan, chairman of KPMG in Saudi Arabia.
Updated 17 December 2018
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KPMG survey: Saudi CEOs positive about future growth

Chief executive officers in Saudi Arabia remain moderately optimistic about the growth prospects of the Kingdom’s economy, as it diversifies away from oil, according to a survey by KPMG Al-Fozan & Partners, an audit, tax and advisory service provider.

The cautiously pragmatic outlook of the CEOs in Saudi Arabia also reflects the fast-changing and challenging domestic and global environment, such as the slowdown in the private sector and looming trade wars.

In its second edition of the “Saudi Arabia CEO Outlook 2018” report, KPMG Al-Fozan & Partners said nearly two-thirds  of Saudi CEOs are positive about the future growth prospects of the economy and remain positive about the government’s economic diversity programs and initiatives to reduce oil dependence, notably Saudi Vision 2030 and its realization programs.

In this year’s findings, 92 percent of CEOs in Saudi Arabia are confident about the growth of both their companies and industries over the next three years The latest CEO survey is based on the input of 50 CEOs in Saudi Arabia, who took part in the KPMG’s “Global CEO Outlook” report. 

While the report found that global CEOs have become less positive about global growth compared with the previous year, CEOs in Saudi Arabia are more confident about future growth prospects than their global peers. The confidence level of Saudi CEOs about the global economy stood at 94 percent this year as against 55 percent last year. 

Meanwhile, Saudi CEOs rank “return to territorialism” as one of the key challenges to their growth, with 74 percent finding it as one of the top three risks faced by their organization. 

Abdullah Al-Fozan, chairman of KPMG in Saudi Arabia, said: “GCC economies have been experiencing an unprecedented change in the wake of a prolonged period of low oil prices. However, as Saudi Arabia embraces robust national strategies of economic diversification, its CEOs have expressed a very encouraging level of confidence in their business for the next three years.”

He added: “Saudi Arabian CEOs are positive about future growth, considering the economy is diversifying away from oil and real growth is expected to be supported by services and manufacturing. Moreover, a moderate recovery in oil production levels and marginally higher public spending are also expected to support a positive macroeconomic outlook.”

According to Arvind Singhi, head of clients and markets at KPMG in Saudi Arabia, 62 percent of the Saudi CEOs indicate developed markets as their biggest priority for geographical expansion over the next three years, with North America and Australia being the most important regions.


Regional authorities offer free training at HVACR Expo

Updated 21 January 2019
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Regional authorities offer free training at HVACR Expo

The region’s largest dedicated HVACR (heating, ventilation, air conditioning and refrigeration) business event will host specialists from Saudi Standards, Metrology and Quality Organization (SASO), GCC Standardization Organization (GSO) and Saudi Council of Engineers (SCE) among other credible entities.
Set to shed light on the latest efficiency guidelines in the HVACR industry, these authorities will feature a free and certified training agenda at the HVACR Expo Saudi from Jan. 28-30 at the Riyadh International Convention and Exhibition Center (RICEC).
Zayed Mohsen Albagami, deputy director of energy efficiency, SASO, said: “It is important for SASO and for the Kingdom as a whole to support and enhance Saudi Vision 2030 at this time.”
He added: “The role of SASO toward this goal is to help the manufacturer himself adopt a sustainable approach. We implement this through a variety of initiatives, whether it be the issuance of new standards on energy efficiency, raising awareness in the media or finally by holding workshops — as we will do at HVACR Expo Saudi 2019.”
In line with the 2030 initiative, the Saudi government has enacted SASO regulations 2663 and 2874, which improve the efficiency level of all air conditioning equipment. They have also introduced a district cooling framework for new developments exceeding 15,000 tons.
Basem Salameh, conformity specialist at GSO, said: “The GCC Standardization Organization (GSO) aims to harmonize standardization activities among the GCC member states to facilitate both international and intra-trade, and to remove technical barriers for economic operators.”
Along with presentations by SASO, GSO and SCE, the workshop agenda at HVACR Expo Saudi 2019 will include training sessions from industry leaders Carrier, Samsung Electronics, Midea RAC, Al-Salem Johnson Controls, and Shaker Group (LG) to name but a few.
Abdul Rouf Pandith, senior mechanical engineer at KEO International Consultants and speaker at the event, said: “By inviting and bringing together government stakeholders, policy and decision-makers, and leaders from the utility sector across the country, HVACR Expo Saudi can mark a new era in the cooling sector.”
Roni El-Haddad, event director of HVACR Expo 2019, said: “We are extremely honored to welcome SASO, GSO and SCE on board at HVACR Expo Saudi 2019. While the Kingdom is coming together to fulfill the objectives laid out by Saudi Vision 2030, the time is now to bring these authorities on-board and to work with them to ensure that HVACR professionals can achieve the highest standards within their field.”
HVACR Expo Saudi will also bring together more than 85 of the industry’s heavyweights to showcase innovative industry solutions and products at the event. Countries represented will include Turkey, China, the US, France, Italy, the UAE, Singapore, Egypt, Saudi Arabia and more.